The last thing you want to do is frantically run up to your boss asking “How many allowances do I claim on my W-4?”.
Being aware of the number of allowances you are claiming on a Form W-4 [Employee’s Withholding Allowance Certificate] is important for a variety of reasons. Most importantly, the number of allowances you claim on a W-4 determines the following;
- how much tax will be taken from your income (aka the withholding amount)
- the size of your tax refund
Steps to filling out a W-4
You’ll need to follow four simple steps when filling out your W-4 Form:
- Fill out your personal information (Name, Date of Birth, Address, Marital Status)
- Know the number of personal and dependency exemptions you are claiming on your tax return.
- Based on the number from step 2, use that number to help determine your number of allowances.
- Don’t forget to sign the W-4 and turn it into your employer!
The allowances you claim while filling out a W-4 if you are single will differ from the allowances you claim if you are married or have kids.
Claiming zero allowances
- The maximum amount of tax is withheld. Meaning, when it comes time to file your tax return you will most likely receive a refund.
- You’re being claimed as a dependent on someone else’s tax return.
Claiming one allowance (ideal if you are single with one job)
- You’re single and have one job. Claiming one allowance will most likely result in a refund when you file your taxes.
Claiming two allowances
- You are single. Claiming two allowances will get you close to your tax liability but may result in tax due when filing your taxes.
- You’re single and work more than one job. Claim one allowance at each job or two allowances at one job and zero at the other.
- You’re married.
Claiming three allowances
- You are married with one child.
Claiming additional allowances
- File as head of household if you are eligible. You are able to claim additional allowances.
- You had at least $2,000 of child or dependent care expenses that you plan on claiming credit
- You’re eligible to claim the Child Tax Credit
Can I fill out a new W-4 form?
Yes, employees can submit a new W-4 form to their employee at any time during their employment. Have you recently started a second job, had a baby, or tied the knot? Life changes such as these should encourage you to update your W-4 withholding.
A great tool to help you while filling out a W-4 is the IRS Withholding Calculator, located on the IRS website.
Claiming zero allowances means less take home pay, but a bigger tax refund during tax season.
The number you report on a W-4 will ultimately determine your take home pay and your tax refund. Don’t write down any number. Take the few extra minutes to really assess your situation and fill in the W-4 accordingly. By doing so you’re less likely find yourself in a difficult financial situation.
Then, when you’re ready to file your taxes, you’ll have a heads up on whether or not you’ll be receiving a tax refund!
I’m legally married and have one son and work one job how many do I put on my W4?
Hi Diana,
You can claim three allowances. I suggest also using the IRS Withholding Calculator as another point of reference. It will only take several minutes to complete and will give you the most appropriate amount of allowances to claim based on the answers you provide.
Hi I am married and both my husband and I work. We have 2 children. How should both of us file? Married or married but withhold at a single rate? Allowances are confusing me . We both usually claim married withhold at a single rate and zero dependents. I feel like we are taxed to death but don’t want to pay a lot come tax time.
Basically how many allowances should we claim? We want to pretty much break even at tax time. Right now we claim married but withhold at a single rate and zero dependents… Even though we have 2 kids. What should I claim and what should my husband claim? Thanks again:)
Hi Lauren,
I suggest taking a look at the IRS Withholding Calculator. It only takes a few minutes to complete and it will give you the most accurate amount of allowances to claim based on the answers you provide. The amount of allowances that the calculator gives you is the amount that will result in reaching the “break-even” point.
Hi Lauren,
I suggest taking a look at the IRS Withholding Calculator. It only takes a few minutes to complete and will give you the best estimate for how many allowances to claim so that you reach that break-even point at the end of the tax year.
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck. If you claim zero, you’ll have the maximum amount taken out. If you claim a large number, you’ll have less taken out. The absolute ideal scenario is to have your tax liability (or refund) at the end of the year be as close to zero as possible.
Im single and 32 years old and I have new job and I have side job such as USANA health science. Im not sure what 0,1,2,3,4 should I put.
Hi Justin,
You can claim one allowance since you are single and working. I also suggest taking a look at the IRS Withholding Calculator. It only takes a few minutes to complete and will give you the most appropriate amount of allowances to claim based on the answers you provide. Keep in mind, the more allowances you claim, the more you will see in each paycheck and the less of a refund you will receive at the end of the tax year.
I am single (no dependents) and working 2 jobs. One is full time and the other is part time that I only make about $100- $120 a week. I claim 1 at each job, but because the part time job is much less, can I get away with claiming 2 there? When I only had a full time job, I had a nice refund, but thinking if I claim 2 on the part time job, at least for the rest of the year, I will get more for expenses now and maybe a little less in taxes, which is ok. Will this work for me?
Hi Jessica,
You can claim two allowances at one job and zero at the other. You can also claim one at each job.
I am married, both my husband and I work, but I am head of household, we have 2 children, I want a big paycheck but not have to pay at tax time. who should claim more my husband or me? what should we each claim
Hi Nikki,
Typically, your withholding will be most accurate with the spouse that makes the higher income claiming the most allowances.
I suggest taking a look at the IRS Withholding Calculator as another point of reference. It only takes a few minutes to complete and will give you the most accurate amount of allowances to claim so that you reach that break-even point at the end of the year.
The general rule is that the more allowances you claim, the less withholding you’ll have taken out of your paycheck. If you claim zero, you’ll have the maximum amount taken out. If you claim a large number, you’ll have less taken out. The absolute ideal scenario is to have your tax liability (or refund) at the end of the year be as close to zero as possible.